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Starting a consulting business

LegionnairedLegionnaired Registered User regular
edited March 2010 in Help / Advice Forum
So I'm a fairly seasoned programmer (spent all 4 years of college teaching me the right ways to do things, spent 3 years in college and this last 6 months working in perl/ruby/Rails) and though I have a nice job as a senior programmer with a .com (after only 6 months being out of school - now have 3 people reporting to me), I'm rapidly realizing that being at the whim of greedy managers sucks a lot. I'd like to get a job with one of the big banks/insurance companies in the area, but that'll probably be a little while down the line and where I'm at in my life, I'd like the flexibility of per-project work.

I'd really like to be able to work on a per-project basis developing web services - I'm not a designer by any stretch of the imagination, but I give me an idea you'd like to monetize, and I'll bang out rock-solid code to make it work very, very quickly. It seems like most of the consulting biz now is just making websites, though.

Does this seem like the kind of thing I could make work? I've got a couple ideas for different SAAS websites that I could do on the side, and then maybe if those get going I could use the income from that as the basis for my new company...

Or should I just learn me some corporate politics?

Legionnaired on

Posts

  • admanbadmanb unionize your workplace Seattle, WARegistered User regular
    edited March 2010
    I am quite sure that consulting is far more about having a strong network of contacts that will give you referrals and recommendations than how good you are.

    admanb on
  • UsagiUsagi Nah Registered User regular
    edited March 2010
    Sticking around long enough to make some contacts, learn how to work with corporate politics, and not look like a job-hopper is probably a good idea, but there's no reason you can't to web development services in your spare time.

    Usagi on
  • admanbadmanb unionize your workplace Seattle, WARegistered User regular
    edited March 2010
    Usagi wrote: »
    Sticking around long enough to make some contacts, learn how to work with corporate politics, and not look like a job-hopper is probably a good idea, but there's no reason you can't to web development services in your spare time.

    Depends on how evil his employment contract is...

    admanb on
  • KalkinoKalkino Buttons Londres Registered User regular
    edited March 2010
    admanb wrote: »
    Usagi wrote: »
    Sticking around long enough to make some contacts, learn how to work with corporate politics, and not look like a job-hopper is probably a good idea, but there's no reason you can't to web development services in your spare time.

    Depends on how evil his employment contract is...

    Yeah, he could have do not compete or no moonlighting/get permission for all secondary jobs or business clauses

    Kalkino on
    Freedom for the Northern Isles!
  • DachshundDachshund Registered User regular
    edited March 2010
    If you want to contract for any investor owned company (i.e. banks), read up on http://en.wikipedia.org/wiki/Sarbanes_oxley. It is a set of accountability rules that they have to follow (you don't), but if you as a contractor can make it easier for them to comply with SOX (pronounced "socks", colloquial term), you will be oh so desirable. Companies hate it when they have to chase down SOX paperwork that you could have provided so easily. It isn't even all that involved, just accurate time & material reporting, work scope & scope change definition, and some other contract stuff. Companies love when you know about this shit.

    Kind of not really what you asked, but a useful piece of info for any contractor.

    Dachshund on
  • travathiantravathian Registered User regular
    edited March 2010
    Just remember that no contract means no income. Also remember all those nifty benefits your current employer provides go down the drain once you are self employed. Might want to check prices on health insurance, disability insurance, and other stuff to get an idea of the type of income you'll need to make in order to pay for those services yourself.

    And admanb is right, a lot of it is about effective networking to ensure you have a steady stream of work.

    Frankly, you're green and still practically right out of college when compared to programmers with double-digit years of experience, dozens of major projects, and a trail of programming languages a mile long. Spend this time working on your business acumen, expanding your skillset, and getting your network broadened. You also mentioned that you are a 'solutions' guy, not an 'idea' guy; well, time to start looking for a partner who can compliment your skillset.

    Oh, and you think your manager is a greedy fuck, just wait til someone is paying you by the hour for a project. There are plenty of jerkoffs out there in management who are assholes to anyone keeping them from making their next bonus or promotion. The main advantage to a steady job is that you have the same asshole to deal with all time and may make working them easier in the long run.

    travathian on
  • KakodaimonosKakodaimonos Code fondler Helping the 1% get richerRegistered User regular
    edited March 2010
    Why do you want to do work for the banks/insurance companies? Why that industry and not another?

    And you're pretty junior. Everyone I know who's gone on in the consulting side of things has at least 10 years experience under their belt and a long list of contacts. The hard part is really not the programming work, it's getting the next job while you're finishing up the current one.

    Kakodaimonos on
  • RobmanRobman Registered User regular
    edited March 2010
    Consulting is really about knowing lots of people who view you as a go-to person for problem solving.

    Before you start up consulting, do you know 20-30 people who would recommend you to at least 10 different people as a consultant? If not, you're not ready to strike it out on your own.

    Robman on
  • AvicusAvicus Registered User regular
    edited March 2010
    Like everyone has said, its all about who you know more than what you know. My dad is the exception though. He changed careers late in life and within 5 years of being in the Payroll/SAP industry he started a consultant company. And this was more because the other partners in the company were the technical guy or the contacts guy. He was the people person.

    Avicus on
    stephen_coop.gifkim_coop.gifscott_guitar.gif
  • admanbadmanb unionize your workplace Seattle, WARegistered User regular
    edited March 2010
    Avicus wrote: »
    Like everyone has said, its all about who you know more than what you know. My dad is the exception though. He changed careers late in life and within 5 years of being in the Payroll/SAP industry he started a consultant company. And this was more because the other partners in the company were the technical guy or the contacts guy. He was the people person.

    I don't think that's an exception. I expect being a people person made it really easy for him to make contacts. :)

    admanb on
  • DeebaserDeebaser on my way to work in a suit and a tie Ahhhh...come on fucking guyRegistered User regular
    edited March 2010
    So I'm a fairly seasoned programmer (spent all 4 years of college teaching me the right ways to do things, spent 3 years in college and this last 6 months working in perl/ruby/Rails) and though I have a nice job as a senior programmer with a .com (after only 6 months being out of school - now have 3 people reporting to me), I'm rapidly realizing that being at the whim of greedy managers sucks a lot. I'd like to get a job with one of the big banks/insurance companies in the area, but that'll probably be a little while down the line and where I'm at in my life, I'd like the flexibility of per-project work.

    I'd really like to be able to work on a per-project basis developing web services - I'm not a designer by any stretch of the imagination, but I give me an idea you'd like to monetize, and I'll bang out rock-solid code to make it work very, very quickly. It seems like most of the consulting biz now is just making websites, though.

    Does this seem like the kind of thing I could make work? I've got a couple ideas for different SAAS websites that I could do on the side, and then maybe if those get going I could use the income from that as the basis for my new company...

    Or should I just learn me some corporate politics?

    If you have only 6 months of actual work experience you aren't all that "seasoned" in my opinion. You may be God's gift to code, but you will have a bitch of a time convincing any project manager worth his salary to throw in with someone so green.

    Try some freelance work on guru.com, but ultimately it's in your best interest to play the corp politics game and pay your dues for quite some time.

    Deebaser on
  • DocDoc Registered User, ClubPA regular
    edited March 2010
    Deebaser wrote: »
    So I'm a fairly seasoned programmer (spent all 4 years of college teaching me the right ways to do things, spent 3 years in college and this last 6 months working in perl/ruby/Rails) and though I have a nice job as a senior programmer with a .com (after only 6 months being out of school - now have 3 people reporting to me), I'm rapidly realizing that being at the whim of greedy managers sucks a lot. I'd like to get a job with one of the big banks/insurance companies in the area, but that'll probably be a little while down the line and where I'm at in my life, I'd like the flexibility of per-project work.

    I'd really like to be able to work on a per-project basis developing web services - I'm not a designer by any stretch of the imagination, but I give me an idea you'd like to monetize, and I'll bang out rock-solid code to make it work very, very quickly. It seems like most of the consulting biz now is just making websites, though.

    Does this seem like the kind of thing I could make work? I've got a couple ideas for different SAAS websites that I could do on the side, and then maybe if those get going I could use the income from that as the basis for my new company...

    Or should I just learn me some corporate politics?

    If you have only 6 months of actual work experience you aren't all that "seasoned" in my opinion. You may be God's gift to code, but you will have a bitch of a time convincing any project manager worth his salary to throw in with someone so green.

    Was about to post that.

    Doc on
  • Shorn Scrotum ManShorn Scrotum Man Registered User regular
    edited March 2010
    Agreed with the above. Most people just to hire someone want a year or more post-college work experience. Contracting they will be expecting even more. 6 months after college is not seasoned at all.

    Shorn Scrotum Man on
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  • KakodaimonosKakodaimonos Code fondler Helping the 1% get richerRegistered User regular
    edited March 2010
    One way to get some good experience and some credibility is to start working on open source projects. Find something you're interested in and look at contributing. You're going to have to start where everyone else does, in bug fixing and documentation.

    Kakodaimonos on
  • The Crowing OneThe Crowing One Registered User regular
    edited March 2010
    "Going consultant" requires a lot of forethought and planning in order to have a safety net. I am, myself, in the process of starting up some consulting business. I quit my job about a month and a half ago, and it seems to be going decently well so far. I'm a younger guy (25 years old) so I lack a lot of the "experience" that makes a consultant immediately desirable.

    The tricks that have worked for me (and this is by no means universal) are mostly dumb luck. In my "area" I got a lot of impressive resume value by jumping into my field in management, and then landing a pretty awesome 9-5 a year later at a well-respected, local agency.

    A few things really helped me along the way. Specifically, I'm now doing grantwriting and project-management for my old agency. I transitioned from being a "staff member" to being an outside consultant with the same agency. This means that I have the same bosses who know and trust me handing me consulting work on a silver platter.

    I also, before making the move, ensured that I had about 10 months worth of basic expenses in the bank. That's about 2+ years worth of savings. I mention this because, starting out, you're never going to make as much (in most fields) for the first 6+ months or so as you would at a 9-5. At the moment my consulting work covers maybe 1/2 my monthly expenses, so I've got a safety-net of savings and an income stream that is just shy of covering me. My partner works, as well, and provides a further net as her paycheck continues to come in regularly.

    It'll take me awhile to build up my resume and to get something other than the agency I'm working for now.

    I'd echo that with only 6 months in the field, you're probably best off doing some freelance stuff on the cheap to build up contacts and resume. It takes a lot of lucky breaks, and doing a bit on the side here and there will facilitate a move to self-employment down the line. In many cases, it's simply a matter of waiting until something breaks and the opportunity comes along.

    The Crowing One on
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  • LegionnairedLegionnaired Registered User regular
    edited March 2010
    Fair enough, thanks for all of the feedback guys.

    I'm pretty good at my job, but definitely have a lot to learn about managing people, expectations, and business relationships - I have good salary and some good room to pad my resume over the next couple of years, so I'll stick it out and maybe do some contracting on the side for some extra cash and experience.

    Thanks for the comments about the work on OSS stuff, I'm working towards that right now! Just forked Rails' Geokit and added MySQL spacial indexing support, and I'm working on a javascript library (All the good parts of Sproutcore, but with progressive enhancement) in my spare time, so I should have some good traction there in the future.

    Anything to learn in the first 2-3 years in the business of which I should be aware?

    Legionnaired on
  • FallingmanFallingman Registered User regular
    edited March 2010
    Consultancy is about experience. Make sure your value is not your ability to program.

    I think you've had some great feedback, and I think you should concentrate on getting as many experiences as possible. Then you'll be good to go!

    Fallingman on
    [SIGPIC][/SIGPIC]
  • bowenbowen Sup? Registered User regular
    Keep in mind with guru, you're going to get underbid by guys in India and Singapore and the like.

    Sure $20 may seem like a nice get your feet wet type of projects but you will absolutely be underbid by guys willing to go as low as $1 and bang it out in an half hour.

    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
  • DeebaserDeebaser on my way to work in a suit and a tie Ahhhh...come on fucking guyRegistered User regular
    Bowen, if nothing has changed, the OP now has two years of work experience. :)

  • bowenbowen Sup? Registered User regular
    NnnnnnneccrooooPooooossstttt

    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
This discussion has been closed.